Insurance tech companies reaching merger agreements before year's end
As the calendar turns to a new year, several insurance tech firms have announced merger and acquisition agreements in December. Here are some updates:
- Reinsurance software provider Effisoft and general insurance tech vendor Prima Solutions and Effisoft completed a merger agreement on Dec. 13. The combined company sports 300 clients worldwide.
- Verisk acquired Rulebook on Dec. 3 for $87 million. The target company provides an engine for internal pricing and underwriting, external distribution for the specialty insurance market and a data analytics offering.
- Property data provider CoreLogic completed its acquisition of workflow systems vendor Symbility on Dec. 19.
- And as previously reported on Digital Insurance, British telematics company Trak Global Group acquired Intelligent Mechatronic Systems, a Canadian firm in the same sector, on Dec. 17.
In its second half of its 2018 insurtech M&A market report, Hampleton Partners, a European M&A and corporate finance advisory firm serving technology companies, noted that 2018 was already a banner year for this kind of activity in the insurtech sector.
"Insurance enterprise software companies are now navigating through a new terrain and need to adapt to compete with innovative, and disruptive startups that are attuned to a more digital savvy customer base," Hampleton wrote in its report. "Since organic growth and investing in R&D is a long-term game, M&A has been the natural solution to the incumbents' problem."